Forex Trading Terms

Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.


Change in Trading Conditions for Range of Instruments
Change in Trading Conditions for Range of Instruments

22.03.2017 Dear Clients, Forex Optimum Group Ltd advises you that due to certain changes in the list of the company's partners, trading instruments belonging to the groups ForexE...

Demo account in NewForex - it is fast and free
Demo account in NewForex - it is fast and free

Dear clients and partners of the company! This is a reminder that all clients of our company have an opportunity to open a free demo account which ...

Changes in regulatory documents
Changes in regulatory documents

Dear Clients and Partners! We’re informing you that starting March 27th 2017, several amendments will be introduced into the Company’s regulatory documents. The major cha...

Changes in regulatory documents
Changes in regulatory documents

Dear Clients and Partners! We’re informing you that starting March 27th 2017, several amendments will be introduced into the Company’s regulatory documents. The major cha...

Important Notice- CHF Margin
Important Notice- CHF Margin

We would like to inform you that as of Monday March 20th 2017, the additional margin requirements for CHF pairs requirement will be changed. The new improved margin requirements will...

NewForex creates new names for the trading accounts
NewForex creates new names for the trading accounts

Dear clients and partners of the company, We would like to report you that the names of trading accounts — First Stream and New Grade are now replaced ...

Gold and Silver at Risk
Gold and Silver at Risk

Dear Clients, Please be informed that from 1st of March 2017, according to our Risk Management Department decision, positions on Gold and Silver (XAUUSD, XAUEUR, XAGUSD and XAGEUR) w...

Updates in trading conditions for Binary options
Updates in trading conditions for Binary options

Trading condition for binary options have been updated. The major change is the introduction of differentiated minimum duration for up/down binaries with different underlying instrum...

FreshForex: Accelerated order execution
FreshForex: Accelerated order execution

22 February 2017Dear traders, FreshForex has excellent news for its clients! For your convenience, we have optimized performance and made order execution faster on all account types!...

Information update on SWAP (rollover, TomNext) rates
Information update on SWAP (rollover, TomNext) rates

Dear Clients! Please be advised that starting from  February 21st , 2017 Renesource Capital AS IBS has changed and updated rollover (SWAP, TomNext) rates for currency pairs (For...

Improvements in trading terms for CFD’s on the German 30 Index
Improvements in trading terms for CFD’s on the German 30 Index

Dear Clients, The company FIBO Group has reduced the size of the spread by 2 points for the CFD, which is based on the German 30 index. We are confident that it will make trading mor...

Changes in cash indices pricing
Changes in cash indices pricing

February 21, 2017 12:15 Dear Traders, We'd like to inform you that starting from Monday session opening on 27 February 2017, the minimum price increment (tick size) on the follow...

New trading instruments on MT4 NDD account
New trading instruments on MT4 NDD account

Dear traders, FIBO Group company is glad to announce that we added new trading instruments on MT4 NDD accounts. From February 20 11 CFDs on commodities, including CFDs on gold, silve...


Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.

Trading Conditions of Forex Brokers

A main goal of the conditions provided by the companies is satisfaction of traders' requests, irrespective of their experience and skills in the sphere of currency transactions. Today brokers try to consider all current trends and Forex market requirements, providing a set of flexible options for carrying out an effective trading activity, informing clients in news blocks, both on the accompanying changes, and at the start of new tools and conditions. The most important trading conditions are given in this material.

  • Margin Call level, i.e. the level of a necessary margin when the broker can compulsorily close open deals of the trader, without notifying the client;
  • Stop Out level means the level of a necessary margin in case of which trading open deals are closed by the current broker quotes;

Types of Order Execution:

  • Instant Execution when execution of the order takes place at the price offered the broker. If the broker agrees with the price, the order will be performed, in case of rejection of the price by the broker, there is "requoting" (Requote) – the broker returns back suggested price;
  • Execution by Market in the case of this mode of order execution the broker makes the decision on its price, without its regulation with the trader;
  • Execution on Request when the broker informs the trader on execution of the order on stated price.
  • Stop Level determined in the pips(points) from market price. Behind borders of this level the broker allows to establish Take Profit or Stop Loss for the carried-out order;
  • Quoting type (five-digit or four-digit). Quoting with 4 signs after a comma is the most popular, five-digit in turn, interferes with accurate visual estimation of a condition of the fast market;
  • Minimum size of the deposit . When exists an option to open account with only several dollars, the beginner can practice in actual transactions, and more experienced trader to check both Forex trading strategies, and conditions of still unfamiliar company without special risks.